State of Web3 in 2024

Insights into the past, present, and future of Web3

When the term “Web3” was first coined, it symbolized the dawn of a new era: a decentralized, user-owned, privacy-first digital economy. It promised smarter, more seamless communication and business practices, and the unlocking of new revenue streams through trusted data. Now, in 2024, we find that the limitations of the old Web2 paradigm — characterized by data silos, interoperability issues, and escalating trust costs — are more apparent than ever. These challenges underscore the need for a new approach that can cater to our increasingly complex global ecosystem.

Understanding Web3

What is Web3? Is it blockchain? Cryptocurrency? The Metaverse? In truth, ‘Web3’ is more or less a blanket term that represents a broad vision, rather than pinpointing a specific technology or application. This vision extends beyond the boundaries of single entities, encompassing entire value chains to foster a unified digital ecosystem. As a result, the use of blockchain or crypto alone is not enough to constitute Web3 in a meaningful sense. At its core, Web3 is about trust and cross-industry interoperability — seamless interconnection and cooperation among diverse systems, organizations, and industries, with trusted identities and verifiable transactions. Web3’s essence lies in the ability to create a decentralized network where data ownership and control are democratized, unlike the centralized structures of traditional blockchain and cryptocurrency systems.

Central to this evolution is the World Wide Web Consortium (W3C) Decentralized Identifiers (DIDs) and Verifiable Credentials (VCs) standards. These technologies provide the foundation for a standardized method of verifying identities and claims, crucial in establishing digital trust and ensuring seamless interoperability across various enterprise environments. Web3, bolstered by the capabilities of DIDs and VCs, is paving the way for a future where digital interactions are more secure, transparent, and user-driven. Its successful adoption and scaling in the enterprise domain hinge on embracing this shared approach to break down silos and foster a unified digital ecosystem. Learn more about how DIDs and VCs serve as key enablers for Web3

Solving Challenges in Driving Enterprise Web3 Adoption

The path to widespread enterprise adoption of Web3 has been slow, with efforts often limited to proofs-of-concept. This hesitance can be attributed to several factors:

  • Lack of Understanding: For many, the concept of Web3 remains shrouded in confusion, with terms like blockchain, NFT, and cryptocurrency often used, mistakenly, as synonyms for Web3. This conflation not only obscures the true potential of Web3 but also impedes its integration into mainstream applications.
  • Lack of Standardization: Lack of standardization in Web3 leads to a ‘wild west’ scenario, discouraging many companies from attempting implementation. Those who do venture into Web3 face fragmentation, as the use of varied protocols and blockchain platforms essentially results in the same Web2 siloing issues that Web3 aims to address.
  • Scalability Concerns: Challenges with network congestion and transaction throughput have made scalability a critical issue.

MOBI’s Web3 Infrastructure: Trusted Identities and Verifiable Transactions for Cross-Industry Interoperability and Commerce

MOBI is working alongside our members to build a federated Web3 InfrastructureCitopia and the Integrated Trust Network (ITN) — to create a privacy-preserving decentralized marketplace for digital commerce. Leveraging standards from MOBI, W3C, ISO, IEEE, SAE, and more, Citopia and the ITN together offer standardized communication protocols for cross-industry interoperability. This unified framework serves as a common language, enabling organizations with diverse business processes and legacy systems to efficiently coordinate and communicate without having to build and maintain new infrastructure. Organizations can securely share data and verify claims throughout the entire value chain, overcoming the barriers posed by traditional, centralized Web2 systems.

In our commitment to demonstrating the scalability and effectiveness of this infrastructure, MOBI and its members have conducted several successful pilots, including:

These pilots have yielded outstanding results, affirming Citopia and the ITN’s capacity to handle large-scale operational demands with robustness and efficiency.

To accelerate Web3 understanding and adoption, MOBI is also providing comprehensive educational courses through MOBI Academy, aimed at demystifying Web3 concepts and their practical applications. Explore MOBI Academy

Looking Ahead: 2024 and Beyond

As we forge ahead into 2024, our focus at MOBI remains steadfast on enhancing Citopia and the ITN for more effective enterprise adoption and scalability. We are actively exploring the transformative potential of this technology across various industry verticals. Collaboration is at the core of our strategy, as we work hand-in-hand with our partners and other consortia — including the Global Battery Alliance, Catena-X, Battery Pass, NADA, and AAMVA — to address critical pain points and refine our solutions.

In our commitment to fostering a dynamic and collaborative community, next month marks a significant milestone. We are excited to host MoCoTokyo (19 Feb 2024) in partnership with Amazon Web Services (AWS). This event will bring together industry leaders and innovators to delve deeper into the initiatives of our Circular Economy and the Global Battery Passport (CE-GBP) Working Group. Additionally, we’re hosting a members-only workshop in Tokyo (20 Feb 2024) in partnership with DENSO to facilitate vital discussions surrounding the Global Battery Passport, including laying out a roadmap for the implementation of a cross-industry Minimum Viable Product. Register for MoCoTokyo and our Members-Only Workshop